Love of Country

Entrepreneurs in rural regions may soon have a shot at a funding
windfall. The Rural Business Investment Program (RBIP), a joint
effort of the Department of Agriculture and the SBA, seeks to make
available $60 million for equity investing and $3 million in
grant-funded technical assistance for businesses in small, rural
communities.

Under the program and the current available funding, the SBA
anticipates licensing up to three VC firms as Rural Business
Investment Companies (RBICs) this year. Each RBIC selected will
then have up to 12 months to secure $10 million in private
financing, after which each is eligible to receive a commitment for
up to $20 million in leverage through the RBIP. Upon licensing, an
RBIC is entitled to a $1 million Operational Assistance Grant,
explains the SBA's Dennis Byrne.

"The program was created by the 2002 Farm Bill to help
create or expand the type of rural business ventures needed for a
strong rural economy and job opportunities," says Byrne.
"An RBIC can provide not only the dollars for expansion and
additional employees, but also cost-free, hands-on technical
assistance as to how that would be best achieved."

Rural entrepreneurs can find contact and geographical focus
areas for RBIC companies on the RBIP website,
adds Byrne, who urges entrepreneurs to talk to the appropriate RBIC
about investment criteria before applying for financing.

A Good Time for an IPO Gold Mine?

Think the IPO market looks too grim to be worth a gamble? Think
again. Contrary to popular practice, the best time to buy IPO
stocks is when markets are flagging. Because companies have an
easier time going public during good times, those that make the
move during more turbulent times are more likely to be a solid bet,
according to Jay Ritter, a finance professor at the University of
Florida in Gainesville.

History supports the theory. While just 22 percent of the
companies that went public in 1999 and 2000 are trading above their
offering prices, a whopping 69 percent of the 221 companies that
went public in the less hospitable 2001 to 2003 period are trading
above their offering prices. How does today's IPO market rate?
"[2004] should see about 200 deals, or less than half of the
average number during the 1999 and 2000 boom," says Ritter.
"So while it's recovering from the depths of the bear
market, the IPO market is still pretty tepid--which suggests that
now is a good time to buy selected IPOs and hold them for the long
run."

2003 was the first year debit cards and other electronic payment
methods beat out checks, with

44.5 billion

transactions compared to

36.7 billion.

Statistic Source:
Federal Reserve

To retain employees,

72%

of small businesses expect to increase wages and benefits more
aggressively in 2005 compared to 2004.

Statistic Source:
Employco Group

Jennifer Pellet is a freelance writer in New York City
specializing in business and finance.